Physical verification, biometric authentication and registration rejection
Most rejections are about an address, a document mismatch or a verification report you never saw.
Where Aadhaar authentication is not completed or is flagged, or where the officer considers it necessary, physical verification of the place of business is carried out and the report is uploaded in REG-30. Biometric based Aadhaar authentication has been rolled out State by State, requiring attendance at a designated centre. Rejection follows a notice in REG-03 and a reply in REG-04, and an order of rejection in REG-05 is appealable, though a fresh application is usually faster.
The common grounds of rejection
Address mismatch between the application and the supporting document, including a difference in the floor, unit number or spelling.
A rent agreement not in the applicant's name, or a consent letter without proof of the owner's title.
An electricity or municipal bill that does not correspond to the premises or is in a third party's name without explanation.
An adverse physical verification report — premises not found, no signage, no business activity observed.
Failure to reply to REG-03 within the period, which results in rejection without any consideration of the merits.
A director or promoter linked to another registration that was cancelled or is under investigation, which triggers additional scrutiny.
How to answer REG-03
Answer within the period, in REG-04, addressing each query separately with the document attached.
Where the address is questioned, provide a set that agrees: the agreement, the utility bill, the municipal record and photographs of the premises with signage.
Where verification was adverse, ask for the report. A rejection based on a report the applicant never saw is challengeable, and often the report records that nobody was present rather than that the premises do not exist.
Where a promoter's other registration is the concern, address it directly with the facts rather than leaving the officer to infer.
After rejection
A fresh application, correcting the defect, is usually faster than an appeal and is the normal course.
An appeal under Section 107 is available and is worth filing where the rejection reflects on the promoters, or where a fresh application will be rejected on the same ground.
Where the rejection is arbitrary or the verification report was withheld, a writ is available and courts have directed grant of registration or a fresh consideration.
In every case, keep the business impact in view: a supply made without registration cannot be invoiced with tax, and the customer's credit is affected.
What to do on Monday
Assemble a premises document set that agrees on the address, character for character, before applying.
Reply to REG-03 within the period, query by query, with documents.
Ask for the verification report whenever verification is adverse.
Plan the biometric appointment into the registration timeline.
This page states the general position. A reader with a specific question on their own facts may write to the GST practice at AMLEGALS.
Write to the GST practiceQuestions we are asked on this
Can we see the physical verification report?
Ask for it in writing. A rejection resting on a report never disclosed is challengeable.
Is biometric authentication mandatory?
It has been extended State by State. Check the requirement for the State of application and plan for the appointment.
Should we appeal or reapply?
Reapply where the defect is curable; appeal where the rejection reflects on the promoters or would recur.
Can a consent letter be used for premises owned by a director?
Yes, with proof of the owner's title and the consent letter in the prescribed manner.
What if the premises are under fit out and there is no signage?
Explain it in the reply with photographs and the fit out contract. Verification reports commonly record the absence of activity rather than of premises.
In this cluster
- GST registration in 2026: thresholds, documents and timelines
- Suo motu cancellation and the revocation route
- Retrospective cancellation and its effect on buyers
- Multiple registrations, places of business and additional premises
- Casual taxable person and non resident taxable person registration
- Composition scheme: eligibility, restrictions and exit
- Amendment of registration and the officer's discretion
- Section 29(2) grounds of cancellation, read strictly
- Aggregate turnover: the computation that decides thresholds and obligations
GST Insights is published by AMLEGALS for general information. Law stated as on 3 September 2026. Not advice on any particular set of facts; not an advertisement or a solicitation under Rule 36 of the Bar Council of India Rules. Readers with a question on their own facts may write to the GST practice of their own accord.